Social Question

Where can I find information about managing savings, and spending less?

Last year was a very bad year financially for me, but this year is great. I am literally earning money faster than I can spend it.

However, because I am earning so well, I am finding it very very hard to avoid “living the good life”. The temptation to spend when I know for a fact that there will be more money coming my way in just a couple of hours is very strong.

I don’t have any debt, I pay all my bills on time, I have money to spend, and all is cool. Just, I feel like I am on the border of wasting an oportunity to save, like a one hit wonder pop star that blows all his cash and then ends up broke when they had a chance to make something of them selves.

I am not some big wallstreet tycoon, in fact, some of you reading this are no doubt earning far more than me, but for me, and my standards, I’m earning a good 8 times more than I’m used to. I could do with some good advice.

Maybe typing out this question will serve as a confession and help me think more about saving, but I could use some info. I don’t have millions and millions to invest, so I don’t need a lawyer in the Caiman Islands just yet, but I certainly could put a few thousand in to something at the moment.

The easiest and most straightforward is one of the Vanguard tax-free municipal bond funds, if’ you’re in NY, CA, MA, OH and PA (doing this from memory.) Or else one of their conservative, low risk funds (value, growth and value, growth, tax-free). You can call and get free advice.

One of my favorite concepts is that of the “Lazy Portfolio.” Here are several examples that do as well as or better than actively (and expensively) – managed portfolios.

I have some memory of you being out of the country. If so, any of the reputable funds will do…T Rowe Price, Fidelity, Vanguard (really low fees) for example.

Put some of your cash into a fund or two every month. If you can, have it done automatically. That will reduce the temptation to buy the Playboy mansion, hire a closet designer or a personal shopper, etc.